SINGAPORE (Mar 29): CapitaLand Retail China Trust (CRCT) and CapitaLand have entered into an agreement to divest their combined 100% stake in the company which owns CapitaMall Wuhu.

The transaction price is based on the company’s adjusted net asset value, including but not limited to its interest in CapitaMall Wuhu of RMB210 million ($41.5 million). The buyer is an unrelated third party.

Located in Wuhu city in China’s Anhui Province, CapitaMall Wuhu is a five-storey shopping mall with a gross floor area, excluding car park, of 45,000 sqm. The mall has been closed since 3Q18, following the exit of its anchor tenant.

The divestment of CapitaMall Wuhu is expected to be completed in 2H19. Following the divestment, CRCT’s portfolio will have 10 malls in seven Chinese cities, while CapitaLand’s retail network in China will comprise 51 malls in 21 cities.

Tan Tze Wooi, CEO of CapitaLand Retail China Trust Management, says: “The divestment of CapitaMall Wuhu is in line with our proactive asset management strategy to optimise CRCT’s portfolio and enhance returns. As our 51% stake in CapitaMall Wuhu accounts for less than 1% of CRCT’s asset size, its sale is expected to have minimal impact on CRCT’s core business. The sale proceeds will provide CRCT with greater financial flexibility to take advantage of market opportunities. We remain on the lookout for strategic opportunities to reconstitute and strengthen our portfolio.”

CRCT and CapitaLand closed on Friday at $1.57 and $3.65 respectively.